Description
SWOT ANALYSIS OF SHOWA DENKO

Showa Denko

Parent Company

Merger of Nihon Electrical Industries and Showa Fertilizers

Category

Industrial products

Sector

Diversified chemicals

Tagline/ Slogan

Shaping ideas

USP

Unique chemical company with individualized products

STP

Petrochemicals, electronics, chemicals, aluminum, inorganics and Segment others

Olefins and organic chemicals, electronics materials and hard disk, industrial gases, basic chemicals, electronic chemicals, and functional Target Group chemicals, LIB manufacturers and builders

Positioning

Passion project - Provision of useful and safe products

SWOT Analysis

1. Developing of strong revenue stream made possible through due to the diversified product portfolio 2. Strong employee base of about 12000 people 3. Presence in wide business segments reduces dependency risk and enables it to tap opportunities in various industries 4. High focus on long-term sustainable growth 5. Its product portfolio includes chemicals, electronics, inorganics, Strength aluminium etc

1. Over dependency on Japanese market exposing business to concentration risks 2. Adverse economic, regulatory and environmental policies have affected the business as in case of natural disaster in Japan 3. Operating income decreased due to the influence of the steel Weakness industry’s prolonged inventory adjustments on electrode business

1. Expanding of the aluminum-based products business outside Japan Opportunity is likely to help SDK increase its geographic footprint

2. Expansion of Graphite electrode business to provide huge growth opportunity for the company 3. Petrochemical division to be strengthened by the strategic initiatives

1. Concentration of business in Japan and appreciating Yen could affect the company's results of operations 2. High competition in the business can affect the companies profit margin Threats 3. Olefin supply exceeded demand, despite brisk demand from China

Competition

1. Asahi Kasei Corporation 2. GrafTech International Ltd. 3. Mitsubishi Chemical Corporation Competitors 4. Sumitomo Chemical Co., Ltd.



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